The audience is trying to purchase Emirates Telecommunications Group Company PJSC (ADX:ETISALAT) for its dividend must act quickly, as the stock is just about to exchange ex-dividend. One must buy shares before March 25th to collect the payout, which will be received on April 22nd.

Emirates Telecommunications Group Corporation PJSC's next dividend payout would be.0.80 per share, after a gross dividend payment of.0.80 to shareholders the year before.

Emirates Telecommunications Group Company PJSC has a trailing yield of 3.8 % on the current stock price of AED20.9 based on net dividend payments made the year before. Dividends are a valuable income source for many shareholders, but retaining such dividends is dependent on the wellness of the company.  As a result, viewers can still check to see whether Emirates Telecommunications Group Company PJSC has been able to increase its dividends or whether the dividend could be reduced.

Dividends are generally paid by corporate earnings, but if a company is paying out far more than earns, the payment is more likely to decrease. Its dividend payment ratio is 77 % of sales implying that the firm distributes the rest of its profits. Profit reinvestment could be reduced, which could delay the pace of potential revenue growth. This could become a problem if profits begin to fall.

Even then, cash reserves are more critical than earnings when determining a payout, since we must determine if the business generated enough money to pay its payment. It distributed more than half (71%) of its cash flow in the previous year, which is beyond the context of other firms.

It's encouraging to see that Emirates Telecommunications Group Company PJSC's dividend is paid by both earnings and cash flow since this indicates that the dividend is reliable, and a lower dividend yield normally indicates a larger margin of safety before the dividend is reduced.

Have Earnings And Dividends Increased?

Stocks with stagnant earnings will also be enticing dividend payers, but one must be more cautious and expect a higher safety margin when it comes to dividend stability. If earnings fall and the firm is forced to slash its dividend, investors can see the worth of their investment disappear. With that in mind, we are unimpressed by Emirates Telecommunications Group Company PJSC's earnings per share, which have been successfully stable for the last five years.

It's preferable to watching them fall, and over time, most of the good dividend-paying stocks will significantly increase their profits per share.  A higher payout ratio of 77 % is usually the result of a company's failure to find alternative uses for its cash. When coupled with the company's recent earnings development, Emirates Telecommunications Group Company PJSC may be indicating that its potential growth opportunities are bleak.

Many investors can evaluate a company's dividend potential primarily by looking at the historical price of dividend development. Emirates Telecommunications Group Company PJSC has raised its dividend by about 3.9 % a year on average over the last ten years.

To summarize

Is Emirates Telecommunications Group Company PJSC a good dividend stock or can it be avoided? While Emirates Telecommunications Group Company PJSC paid out more than half of its profits and free cash flow the year before, the payout ratios are under the usual range for most companies. To sum up, while Emirates Telecommunications Group Company PJSC has some excellent qualities, we are not tempted to rush out and purchase it today.

If you'd like to understand more about Emirates Telecommunications Group Company PJSC, you should be aware of the problems it faces. To assist you, we've found two warning flags for Emirates Telecommunications Group Company PJSC that you'd be mindful of before actually investing in their stock.

Buying the first attractive stock one comes across is the typical investing error. Below is a list of attractive dividend stocks with quite a yield greater than 2% and an expected dividend:

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